A Chinese firm has reportedly begun using Tether's stablecoin (USDT) to navigate around international sanctions imposed on Russia, facilitating cross-border transactions with Russian companies.
This method has gained traction among Russian commodities producers, particularly in the metals sector, as they face challenges in executing traditional bank transfers due to secondary sanctions. By leveraging stablecoins, these firms can conduct transactions more swiftly and securely, avoiding the risks associated with frozen bank accounts and lengthy processing times, thereby modernizing their payment systems amidst increasing sanctions pressure.
Citations:
[1] https://bitcoinblog.de/2024/06/06/tether-dollar-increasingly-important-for-russian-chinese-trade/
[2] https://crypto.news/russias-top-metal-producers-reportedly-turn-to-tether-for-trades-with-china/
[3] https://www.bloomberg.com/news/articles/2024-05-28/russian-firms-turn-to-crypto-for-commodities-trade-with-china
[4] https://coingape.com/stablecoin-russia-china-settle-key-deals-using-usdt-amid-us-sanctions/
[5] https://protos.com/russian-companies-using-usdt-to-evade-uk-and-us-sanctions-report/